Sean Lane, the American Airlines Bankruptcy Judge, has refused to approve the airline’s request to throw out its existing pilot contract and impose cost reductions needed to restructure. Lane stated that the airline hasn’t made the case that its labour proposal for the pilots was necessary for its reorganization but he could still be persuaded otherwise. “The court concludes that American’s proposed changes to furlough and codesharing have not been justified,” said Lane. “Given the significance of these two provisions collectively to American’s proposal, the court finds that American has not shown that the proposal is necessary as required.”
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